Demand Response

Status Report

Calvin Opheim

October 9, 2007

22

Outline

• Current Option for Wholesale Settlement of Demand Response

• Future for Wholesale Settlement of Demand Response– Status of Protocol Changes (PRR-736)– Status of Operating Guide Changes (LPGRR-027)

• Current Issues

• Next Steps

33

Current Option for Wholesale Settlement of Demand Response

• Today Wholesale Settlement of Demand Response requires the installation of an IDR meter– ERCOT settlement system can support up to 50,000 IDR meters

before system performance starts degrading– ERCOT settlement system can not handle more than 200,000

IDR meters– While an available option for today, not a very robust solution– Can be cost prohibitive

44

Future for Wholesale Settlement of Demand Response

Stakeholder Process

• A lot of work has been performed by Market Participants and ERCOT creating language that supports Demand Response– Protocol Revision Request (PRR) 736– Load Profiling Guide Revision Request (LPGRR) 027

• Goal is to implement Demand Response in wholesale settlements by the summer of 2008– Only includes energy settlements (Real-Time Energy Imbalance)– Does not include capacity payments (currently not included in

Nodal Protocols)

55

PRR-736 and LPGRR-027

Key Points

• Need a more timely approach for creating Demand Response load profiles than using load profile models

• Currently all load profiles are based on models– Need to determine sample– Requires approximately 2+ years worth of data to calibrate

model– Can take years before the model is ready to use in Wholesale

settlements

66

PRR-736 and LPGRR-027

Key Points

• Establish the RLDP (Representative Lagged Dynamic Profile) language

• Lagged Dynamic Sampling– Need to determine sample– Data from the sample is used directly to create Demand

Response profiles (i.e. no model is created)– Once data is collected and validated can be used to create

Demand Response load profiles for use in Wholesale settlements

– Much quicker option for implementing new load profiles

77

PRR-736 and LPGRR-027

Key Points

• Unique Demand Response Profile for each REP Demand Response Program– REPs may have more than one Demand Response load profile– Settlement on the Demand Response load profile year round

(not limited to when a Demand Response event occurs)

• Advanced Metering Infrastructure (AMI)– No truck roll required to install sample meters– Very easy to refresh the sample periodically– Reduces sample aging / bias problem

88

Protocol Revision Request (PRR) 736

• Revised Protocol language has been developed through the market stakeholder process

• PRR was drafted by the Profile Working Group (PWG)• PRR was endorsed by Commercial Operations Subcommittee

(COPS) in August• Will be reviewed by Protocol Revision Subcommittee (PRS) in

October• If approved by PRS the next steps are determining the Cost

Benefit Analysis (CBA) and the Impact Analysis (IA)

99

Load Profile Guide Revision Request (LPGRR) 027

• Load Profiling Guide language is being developed through the market stakeholder process

• Will be reviewed by Commercial Operations Subcommittee (COPS) in October

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PWG Recommendations

• Profile Working Group (PWG) will be providing a recommendation for a long-term solution– Involves changes to the switch process– Texas Set team to meet with representatives from the PWG and

ERCOT to define the requirements

• PWG will also recommend a short-term solution to enable the Wholesale settlement of DR– The short-term solution is available as an option to bridge the

gap until the Texas Set changes are implemented

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Current Issues

• How are ESI-ids on Demand Response Programs to be identified in the Profile ID?– Need to be associated with the corresponding Demand

Response Load Profile for settlement purposes

• Switching of Demand Response ESI-ids, Move In, and Drop to POLR

• Are Demand Response Load Profiles Private or Public information?– Currently all load profiles are public information

• Other issues which have not been identified

Profile ID Review

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Profile IDs

• All ESI-ids are assigned a Profile ID

• Profile ID identifies which load profile is to be used in settlements

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Profile IDs

• Profile ID consists of:

– Profile Group Code (BUS, RES, or NM)– Profile Segment Code (HILF, LOLF, MEDLF, NODEM, FLAT,

LIGHT, HIWR, LOWR, or IDRRQ)– Weather Zone Code (COAST, EAST, FWEST, NCENT, NORTH,

SCENT, SOUTH, or WEST)– Meter Data Type Code (IDR or NIDR)– Weather Sensitivity Code (NWS or WS)– TOU Schedule Code (NOTOU, TOU01, TOU02, …, TOU12,

TOU13)

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Profile Ids - Examples

• Examples of valid Profile Ids:

RESHIWR_COAST_NIDR_NWS_NOTOU

RESLOWR_SCENT_NIDR_NWS_NOTOU

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Profile IDs

• Examples of valid Profile Ids:

RESHIWR_COAST_NIDR_NWS_NOTOU

RESLOWR_SCENT_NIDR_NWS_NOTOU

Profile Group Code

1717

Profile IDs

• Examples of valid Profile Ids:

RESHIWR_COAST_NIDR_NWS_NOTOU

RESLOWR_SCENT_NIDR_NWS_NOTOU

Profile Segment Code

1818

Profile IDs

• Examples of valid Profile Ids:

RESHIWR_COAST_NIDR_NWS_NOTOU

RESLOWR_SCENT_NIDR_NWS_NOTOU

Weather Zone Code

1919

Profile IDs

• Examples of valid Profile Ids:

RESHIWR_COAST_NIDR_NWS_NOTOU

RESLOWR_SCENT_NIDR_NWS_NOTOU

Meter Data Type Code

2020

Profile IDs

• Examples of valid Profile Ids:

RESHIWR_COAST_NIDR_NWS_NOTOU

RESLOWR_SCENT_NIDR_NWS_NOTOU

Weather Sensitivity Code

2121

Profile IDs

• Examples of valid Profile Ids:

RESHIWR_COAST_NIDR_NWS_NOTOU

RESLOWR_SCENT_NIDR_NWS_NOTOU

TOU Schedule Code

Identifying Demand Response ESI-ids

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Identifying Demand Response ESI-ids

• Modify the Profile Group and Profile Segment Code:

RESHnnnn_COAST_NIDR_NWS_NOTOU

RESLnnnn_SCENT_NIDR_NWS_NOTOU

Profile Group Code

Profile Segment Code

Where nnnn represents the ERCOT assigned Demand Response

Program ID and the first four characters represent the

Non-Demand Response Load Profile.

Texas Set Transaction Considerations

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Texas Set Transactions

• Profile ID is used in the following Texas Set transactions:– Switch, – Move-in, – Drop to POLR

• The option the market decides to implement for the identification of Demand Response ESI-ids could have system impacts to support these transactions– Impact may be to Market Participant systems, ERCOT systems

or both– Impact to all REPS whether they offer a Demand Response

program or not

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Texas Set Transactions

• Proposed Long-Term Solution: Modify the business logic in the 814_04 (Premise Information) so that:

– All ESI-ids that are on a Demand Response program that switch have their profile ID that is passed to the gaining CR changed to a non-demand response load profile

– This should minimize any required system changes to CRs who don’t offer Demand Response programs

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Texas Set Transactions

• Example:– ESI-id 123 is currently on a Demand Response Program for CR

ABC

– The profile ID for ESI-123 is RESH0001_COAST_NIDR_NWS_NOTOU

– ESI-id switches to CR XYZ

– The TDSP receives the 814_03 (Switch CR Notification)

– The 814_04 (Premise Information) contains the Profile ID (RESH0001_COAST_NIDR_NWS_NOTOU) from the TDSP

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Texas Set Transactions

• Example continued:

– The business logic for the 814_04 and/or 814_05 would need to be modified such that the profile ID for ESI-123 would be changed to the non-demand response profile ID (RESHIWR_COAST_NIDR_NWS_NOTOU)

– The gaining CR would receive RESHIWR_COAST_NIDR_NWS_NOTOU as the profile ID on the 814_05 (Premise Information)

• Texas Set to begin work on defining these requirements

Are Demand Response Load Profiles Public or Private Information?

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Are Demand Response Load Profiles Public or Private

• Since Market Open, all load profiles have been classified as public information

• If Demand Response Load Profiles are classified as Private– Affects the data that is currently provided to the market– Who will receive the private data? REPs and QSEs?– Possible system changes for ERCOT– Possible system changes for Market Participants

CCET Pilot

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CCET Pilot

• ERCOT is participating in the CCET Demand Response Pilot

– Benefits the market by identifying possible issues well in advance of the desired settlement implementation date

– Allows Demand Response to be implemented sooner than by not participating in the Pilot

ERCOT Demand Response Project

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ERCOT Demand Response Project

• After PRR-736 and LPGRR-027 are approved, ERCOT will initiate a project to implement the wholesale settlement of Demand Response Programs

• Project funding (approx 500k) for this effort has been approved and the project has been added to the 2008 Project Priority List (PPL)

• Goal is implement required functionality to support wholesale settlement of Demand Response programs

• Implements energy only settlements (i.e., Nodal Protocols currently do not include capacity payments for load for Real-Time settlements)

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Conclusion

• Current market discussions underway• Need Market Input at these meetings• Decision will be reached through the ERCOT governance

process• System changes will be required for Market Participants and

ERCOT– Amount of change will depend on the selected approach– Nodal resource constraints need to be considered

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Questions?

ON

OFF